Interest Rate Update Blog article

Where are rates heading?

As was widely expected, the RBA decided to keep the official cash rate on hold at 2.0% at their December Meeting.

Summer has arrived and at its
final meeting for 2015 today, the Reserve Bank of Australia has again elected
to keep the official cash rate on hold at 2.0 per cent. With its next meeting
not scheduled until the first week of February next year, we can look forward
to the cash rate remaining at this level throughout the holiday season.

The official cash rate is currently at an all-time low after the RBA cut rates
in February and May this year. Economists had been speculating about a further
rate cut in 2015, and there is now talk about this occurring at the next RBA
meeting, scheduled for February 2016.

Even though the official cash rate remains on hold, some home loan interest
rates were on the move during October and November. In order to meet APRA's
tougher credit policy requirements, most banks raised interest rates on
property investment loans first followed by further increases across all variable rate loans.

With interest rates on the move and lending criteria changing for property
investors, it's a great time to talk to us about your finance requirements and
plans for 2016. We're here to help you find the right loan for your personal
financial situation and goals, so please don't hesitate to give us a call for a
chat today.

Choice Capital is the trading name of Choice Capital Mortgages Pty Ltd. ABN: 73 158 355 423 Australian Credit Licence: 392127 and Choice Financial Advisors Pty Ltd. ABN:83 086 835 832 Australian Financial Services Licence: 324987.
Any advice in this website is of a general nature only and all case studies are for illustrative purposes only. Please seek advice tailored to your own personal circumstances before acting on this information.